Thoughts on Reading Wealth Strategy 1

In contrast, talent quotient and financial quotient must have financial quotient. It's not too late to cultivate your own financial quotient. It's really not easy to make money in business. There is no idea and no ink in my heart, and this money is estimated to be wasted soon. What makes this book refreshing to me is its attitude towards money, which is respectful, because the money in return will come only when you do the right thing, and the money that you get confused will be squandered.

China people will take an extreme attitude towards money, either treating it like dirt or life. A better understanding is that money is God's hand, warmth is dominant, and it is God's noblest gift to people. We should like money and be willing to study how to use it, instead of clinging to money itself, because money is just a tool.

In the past, I was single-minded and paid more attention to single return, such as pursuing high salary. Desire is difficult to fill, and the cost of desire is infinite, which is the real reason why many people with high salaries save very little. Many people returned to pre-liberation after encountering unexpected expenses such as accidents, diseases and unemployment. What's more, people's physical fitness itself is limited, and it is impossible for them to struggle as hard as they did at the age of twenty at the age of forty. The opposite of simple profit thinking is compound interest thinking, which pursues the power of superposition. Physical strength cannot be superimposed, but assets can. Therefore, compound interest thinking will choose to make money by assets instead of physical strength. Mr Buffett once said: "A person's time and energy are limited. If you want to earn money by your own ability, both ability and physical strength are the upper limit of earning money. There is no upper limit to relying solely on asset appreciation. " He has been buying all his life: identifying undervalued and valuable "assets".

People with simple thinking will choose to earn money by physical fitness, but people's physical fitness is limited and it is impossible to add it up. Compound interest thinking will be more willing to build brain power, but brain power will be superimposed. The more professional and experienced you are in a certain field, the more valuable you are when you get older. Your ability to find your way will be faster, cheaper and more effective than others.

One more thing, I don't know if you realize it. The more you want to make money that everyone can see, the harder it is. What you can see at a glance can be seen by others. There are many people who are richer, less demanding and more diligent than you. It won't be that easy. Only by establishing core competitiveness and doing things that others can't do will there be a steady stream of wealth. So never stop thinking, the world is so cruel, people who don't work hard can only work hard. If you look carefully, you will find a phenomenon. The harder people work, the lower their income and the more unstable they are.

assets and liabilities

The meaning of assets: something that gives you money to spend constantly, or something that you are sure can have a lot of room for growth, is called assets. Pay attention to three points: first, "making sure it will add value" is the key. All uncertainties are not assets. Second, assets should bring positive cash flow, instead of always making endless investments. Third, assets are not necessarily tangible property.

Definition of debt: those "people or property" who constantly consume money; Property that costs you a lot of money, but you are not sure whether it will appreciate or depreciate, should be listed as a liability. Mr. Munger has a saying that I have always regarded as a classic: "We are very cautious when buying seriously undervalued assets, so we rarely need to make difficult choices." Our transaction is just a matter of earning more and earning less. " This is the difference! ! ? ! When people have to, the best way is to calm down and review and find a way, instead of taking the old road. If the old road works, how can it be "forced"?

In addition to "have to", there is also a debt thinking: "Ignorant people are fearless and seek wealth and risk." This is also the rhythm of death. If you are lucky, you will be rich for a while, but the ending is doomed to be quite tragic.

Summary:

First, assets will support you, liabilities will eat you, and thinking in debt will turn people and things around you into liabilities.

Second, Jews say that money is only the result, and it is God's reward for doing the right thing.

Third, people and property around you will exist in the form of liabilities rather than assets. Whether you are poor or rich in the future, you will know by taking stock, and you don't need fortune telling.

Fourth, to turn money into assets, you can't simply save money, because money will expand.

Wealth strategy map

As shown in the figure, assets will generate wealth, and wealth will be swallowed up by liabilities. The first step to accumulate wealth is to clear the debt first. As long as you are in debt, no matter how hard you try, you will only get poorer and poorer.

This is my view on chatting. Both career development and investment are smart things that need to collide. Sometimes when we sit down and chat, different people will look at the problem from different angles and come out after chatting. Many times, even if the angle changes, there will be many detours less. It is important that people who chat should have a good level.

How to clear the debt? The best way is to look at the financial statements and find out the bottleneck. Those points where cash flow keeps paying and costs keep spending may be the real bottleneck. Let's share how to build assets. Paying off debts depends on the determination of a strong man to break his arm, building assets depends on ingenuity, pursuing precision, and using limited resources on ideas.

I divide the process of building assets into two stages: making money and making money. In the stage of earning money, we should complete four important tasks: cultivating skills, cultivating contacts, finding a position and learning to use money. In the stage of making money, we should focus on three things: establishing information channels, learning business models and learning to use financial tools.